"I’m pretty disgusted by what’s happening here [in the Vancouver real estate market], and a lack of enforcement has been a part of the problem."

​

The CRA documents mention a Vancouver home that was sold for $5.8 million and whose owner claims the Working Income Tax Benefit for low-income earners.

No allegations of wrongdoing have been made against these homeowners, but the CRA documents state the agency will scrutinize “individuals living in high-valued areas in B.C. who are reporting minimal income not supporting their lifestyle.”

The crackdown could cast a wide net, looking not only at foreign buyers but local ones as well. On top of unreported income from outside Canada, the auditors will look at income from property “flipping,” under-reporting of capital gains from home sales, and under-reporting of the GST on sales of new homes.

Fund manager David LePoidevin told HuffPost Canada recently he believes that Chinese crackdown is responsible for a slowdown in Vancouver’s real estate market in the past few months.

Data shows sales have dropped by double digits over the past few months, relative to a year ago, while new listings have increased, suggesting at least a temporary slowdown.

The individual who leaked the CRA documents to the South China Morning Post said they did so because “like many people, I’m pretty disgusted by what’s happening here [in the Vancouver real estate market], and a lack of enforcement has been a part of the problem."